Watch the CAGED System Chords online guitar lesson by Jeff Scheetz from Street Theory for Guitarists

The CAGED system is just that - a "system" to help you organize patterns, shapes, and harmony on the fretboard. If you take the time to really get these shapes under your fingers there will be a big payoff. You have to really commit to the system though - if you just play through these chords a few times, it won't really help you. Only when you really get it down into your subconscious will you see it help your overall playing.